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Temperatures rose a couple of degrees as experts traded blows on the first day of the Energy Industry Leaders Summit held at Kwa Maritane Bush Lodge in the Pilanesberg National Park on 4 May. The Energy Industry Leaders Summit is a Leadership magazine initiative to create a platform for the top 100 key players to get together in the bush for two days to discuss pertinent issues within the energy industry. With leaders such as Enoch Godongwana, the Deputy Minister of Public Enterprise, Matthews Bontsijang from the Department of Energy, Brian Statham, Chairman of the South African National Energy Association and Kannan Lakmeeharan from Eskom all speaking their mind things are expected to warm up. “We are sailing blissfully ignorant into an iceberg of disaster,” said Statham referring to Eskom’s recent activity, “It’s all smoke and mirrors and we have not moved forward. We have to shake off the shackles and do what needs to be done.” Statham maintains that there is still no resolution on the Eskom energy crisis and that IPP’s (independent power partnerships) are far more likely to look at investment in other countries such as China and India as the risk here is too high. “Taking the buyer out of Eskom was a big mistake based on emotional nonsense,” Statham says. He claims it disenfranchised staff and an entire management hierarchy had to start again from scratch when everyone at Eskom should rather have been worrying about grid stability. Deputy Minister Godongwana admitted more could have been done earlier and promised that Eskom’s Integrated Resource Plan will be gazetted in September. While the Minister admitted he believes the future of energy in South Africa lies in nuclear power, it looks like the country will be staying with coal for now. Acting Chief Director of Energy from the Department of Energy, Matthews Bontsijang, maintains coal is still working well for South Africa. Kannan Lakmeeharan, Eskom's MD systems operations and planning, a member of 2004 team that warned the government that the country had a major electricity problem, was sympathetic to Statham’s stance. However he believes coal is still the best bet and the Kusile plant is the best way to combat any threat to future energy levels. “Technically and professionally I have a responsilbity to the South African people,’ Kannan said, “If we don’t build the Kusile plant we simply won’t have enough. While I appreciate energy sources such as wind are quick and efficient, they are more expensive and just won’t create enough power. I need to be convinced about the viability of alternative energy sources." Kannan agreed that Eskom had not been transparent enough in the past or dealt with the issues at hand but said they were taking urgent action now to ensure that this never happened again. Another issue that is bothering Kannan is that climate change seems to be bringing South Africa longer and wetter winters and this means more electricity is being used. He sees great opportunities in the next five years for co-generation with groups such as Anglo American. “South Africa has a clear energy vision and has made the necessary decisions in 2010 to ensure adequate plant maintenance and infrastructure” Kannan said Dave Collins, an independent climate change consultant, ended the day’s discussions by agreeing with Statham. “They may think it is OK to continue with coal now but we cannot ignore the long-term repercussions. South Africa is currently three times over the international average in carbon omissions.” Collins maintains that while energy sources such as solar, wind and nuclear power might be heavier as investments now, fossil fuel will become increasingly more expensive as it begins to run out. There is also the possibility of other countries taking action against those who are not complying with international standards. RELEASE PREPARED BY: . Energy Industry Leaders Summit was produced by Cape Media Events, a division of Cape Media Corporation. For more information please contact Dylan James on 021 681 7000 /
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